Cook, Douglas O.; chowdhury, jaideep; Zhang, Weiwei - 2021
We examine the impact of optimistic directors that are members of boards and compensation committees on CEOs … compensation. We find that optimistic boards and compensation committees reward CEOs with a higher proportion of equity …-based compensation. We utilize two natural experiments, Sarbanes-Oxley Act (2002) and FAS 123R, to further confirm the positive relation …